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Onward Technologies Ltd. Interim / Quarterly Report 2021
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Interim / Quarterly Report
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Date: October 22, 2021
| To, | |
|---|---|
| BSE Limited |
National Stock Exchange of India Ltd., |
| Corporate Relations Department |
Exchange Plaza, 5th Floor, |
| P J Towers, Dalal Street |
Plot No. C/1, G Block, |
| Mumbai 400 001 |
Bandra‐Kurla Complex, |
| Bandra (East), |
|
| Mumbai – 400 051. |
|
Ref: Scrip Code ‐ BSE: 517536 NSE: ONWARDTEC
Subject: Unaudited Standalone & Consolidated Financial Results for the quarter and half year ended September 30, 2021.
Dear Sir,
Pursuant to Regulation 33 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 ('Listing Regulations'), the Board of Directors of the Company have approved and taken on record, inter alia, unaudited Standalone and Consolidated financial results of the Company for the quarter and half year ended September 30, 2021.
The Board Meeting commenced at 12.25 P.M. and the above matters were concluded at 01:10 PM.
A copy of the Results along with Limited Review Report of the auditors of the Company, as required under Regulation 33 of the Listing Regulations, is enclosed herewith.
Kindly acknowledge the receipt of the same.
For Onward Technologies Limited
DIMPLE CHAUHAN Digitally signed by DIMPLE CHAUHAN Date: 2021.10.22 14:06:26 +05'30'
Dimple Chauhan Company Secretary
Encl: As above
Regd. address. : 2nd floor, Sterling Centre, Dr. A.B. Road, Worli, Mumbai 400018. Tel: +91 22 24926570 CIN: L28920MH1991PLC062542 | email: [email protected] | website: www.onwardgroup.com
Price Waterhouse Chartered Accountants LLP
To, The Board of Directors Onward Technologies Limited 2nd Floor, Sterling Centre, Dr. Annie Besant Road, Opposite Atria Mall, Worli, Mumbai - 400018
- We have reviewed the unaudited Standalone financial results of Onward Technologies Limited (the "Company") for the quarter ended September 30, 2021 and the year to date results for the period April 01, 2021 to September 30, 2021 which are included in the accompanying 'Statement of Standalone Unaudited Financial Results for Quarter ended September 30, 2021', the statement of assets and liabilities as on that date and the statement of cash flows for the half-year ended on that date (the "Statement"). The Statement has been prepared by the Company pursuant to Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations, 2015"), which has been initialled by us for identification purposes.
-
- This Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
- We conducted our review of the Statement in accordance with the Standard on Review Engagements 3. (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
- Based on our review conducted as above, nothing has come to our attention that causes us to believe $\boldsymbol{4}$ that the Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.
- We draw your attention to Note 6 to the statement. The financial results for the quarter ended $\overline{5}$ September 30, 2020 and the year-to-date results for the period April 01, 2020 to September 30, 2020 of the wholly owned subsidiary, Onward eServices Limited, which is merged with the Company with effect from April 01, 2019, were reviewed by another independent firm of chartered accountants under the Act who, vide their report dated October 21, 2020, expressed an unmodified opinion on those financial statements. Our conclusion is not qualified in respect of these matters.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016
Neeraj Sharma Partner Membership Number: 108391 UDIN: 21108391AAAAHF4494 Pune October 22, 2021 Price Waterhouse Chartered Accountants LLP, 7th Floor, Tower A - Wing 1, Business Bay, Airport Road Yerwada, Pune - 411 006 T: $+91(20)$ 41004444, F: $+91(20)$ 41006161
Registered office and Head office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi 110 002
Onward Technologies Limited
Corporate Identity Number: L28920MH1991PLC062542 Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli, Mumbai - 400 018, India. Tel: +91 22 2492 6570
E-mail: [email protected] Website: www.onwardgroup.com
STATEMENT OF STANDALONE UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2021 (INR In lakhs) Year to date Quarter ended Year ended September 30, March 31, 2021 September 30. September 30, September 30. June 30, 2021 Sr. Particulars 2021 2020 2021 2020 No. (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited) 5,671.09 Revenue from operations 5,158.71 4,233.37 10,829.80 8,053.49 17.266.72 $\mathbf{1}$ 358.47 846.14 Other income 187.93 103.76 311.03 291.69 Total Income (1+2) 5,859.02 $5,262.47$ 4,544.40 11,121.49 8,411.96 18,112.86 Expenses a) Purchase of software licences 1.07 174.29 1.07 4,198.36 3,937.59 2,876.87 8,135.95 5.736.45 12,190.37 b) Employee benefits expense (Refer note 10) c) Finance costs 43.85 111.50 21.88 21.97 49.44 207.94 d) Depreciation and amortisation expense 216.52 239.07 435.89 495.97 928.48 219.37 e) Other expenses (Refer note 7) 997.50 1,169.52 735.47 2,167.02 1,302.61 2,940.95 Total Expenses 5,438.18 5,345.60 3,900.85 10,783.78 7,646.43 16,442.03 Profit before tax (3-4) 420.84 $(83.13)$ 643.55 337.71 765.53 1,670.83 Tax expense 128.16 a) Current tax 90.03 26.78 116.81 185.30 370.78 b) Deferred tax 20.71 (48.48 10.95 $(27.77)$ $(15.96)$ 33.34 Total tax expense 110.74 $(21.70)$ 139.11 89.04 169.34 404.12 $\overline{7}$ Net profit/ (Loss) for the period (5 - 6) 310.10 $(61.43)$ 504.44 248.67 596.19 1,266.71 Other comprehensive income, net of income tar i) items that will not be reclassified to profit or loss $(12.48)$ 3.60 14.74 $(B.88)$ 15.17 14.41 ii) income tax relating to items that will not be reclassified $3.14$ $(0.91)$ $(4.79)$ $2.23$ $(4.90)$ $(3.62)$ to profit or loss Total other comprehensive income, net of income ta $19.34$ 2.69 9.95 $16.65$ 10.27 10.79 514.39 1,277.50 $(58.74)$ 242.02 606.46 Total comprehensive income for the period (7+8) 300.76 Paid-up equity share capital : (Face value INR 10 each) (Refer note 1,758.74 1.749.30 1,621.40 1,758.74 1,621.40 1,633.88 10 5,730.78 Other equity Earnings per share (of INR 10 each) $\overline{12}$ Basic: (in INR) $1.76$ $(0.37)$ $3.71$ $1.46$ 3.69 $7.8C$ $1.36$ $3.50$ $7.5c$ Diluted: (in INR) 1.57 $(0.37)$ 3.58
Notes:
The statement has been reviewed by members of the Audit Committee and approved by the Board of Directors at their meeting held on October 22, 2021.
2 This statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and rules amended from time to time.
The Company has only one operating segment which is Engineering Design and IT services. Accordingly, separate segment information is not required to be disclosed.
4 During the quarter and six months ended September 30, 2021, the Company has issued 130,100 equity shares following the exercise of stock options by certain employe under the ESOP scheme, 2009 and has issued 18,500 equity shares following the exercise of stock options by certain employees under the ESOP scheme, 2019.
5 The Company has taken into consideration the impact of the known internal and external events arising from COVID-19 pandemic while preparing the financial information. As a part of such assessment, the Company has considered the recoverability of outstanding trade receivables, contract assets, impact of lease modifications, accounting for benefits received from governments and future cash flow position upto the date of approval of these financial results. The Company is confident of recoverability of assets as on September 30, 2021. However, the impact assessment of COVID-19 is an ongoing process and it's impact remains uncertain, given the uncertainties associated with its nature and duration. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results and the Company wil continue to closely monitor any significant impact on the Company's financial position.
6 During the FY 20-21, the National Company Law Tribunal vide Order dated March 25, 2021, had approved a scheme of merger by absorption of Onward eServices Limite (referred as OeSL), a wholly owned subsidiary, with the Company, with an appointed date of January 1, 2020.
Pursuant to the scheme and requirement of Appendix C of Ind AS 103, the Company has recorded all assets, liabilities and reserves pertaining to OeSL at their respective bool values effective from April 1, 2019. All the intercompany transactions have been eliminated.
The figures for the quarter and six months ended September 30, 2020 have also been restated accordingly to incorporate the impact of the Scheme of Arrangement. As a result the net profit after tax for the quarter and six months ended September 30, 2020 is higher by INR 122.69 lakhs and INR 101.41 lakhs, respectively, as against reported earlier.
- The Company had recognised the export incentives amounting to INR 203.82 lakhs under the Service Exports from India Scheme, 2015 (SEIS Scheme) for services exported til March 31, 2020. In the view of uncertainty on account of delay in announcement by government about the specific details to claim such benefits, the Group had recognised provision in the quarter ended June 30, 2021. As per recent notification, management will initiate a process to claim such benefits and reverse the provision to the extent of eligible claim, on completion of filing.
- 8 The Code on Social Security, 2020 ('Code'), pertaining to employee benefits during employment and post-employment, received Presidential assent in September 2020. The ministry of Labour and employment has released draft rules for the code on Social security, 2020 on November 13, 2020. The new code may impact the existing employer benefit obligations of the Company. The Company will assess the impact and recognise it in its financial statements in the period in which the Code becomes effective and the related rules are notified.
- 9 The Company had entered into an agreement on May 27, 2021 to make preferential allotment to Infinity Direct Holdings (the "investor"). As per the agreement, the Company during the quarter ended June 30, 2021, had issued 1,100,000 equity shares each fully paid-up at a price of INR 130 (inclusive of face value of INR 10 each) per share for cas and 4,300,000 share warrants, each warrant convertible into one equity share of the Company, at a price per warrant of INR 130 (inclusive of face value of INR 10 each) convertible within 18 months from the date of allotment of such warrants. The Company received an approval from the shareholders in extra ordinary general meeting for such preferential allotment. Accordingly the company had issued the equity shares to investor and 25% amount received against warrant issue is accounted as application money received pending for allotment. All the incidental expenses net of tax related to this preferential allotment amounting to INR 156.10 lakhs had been adjusted against other equity.
- 10 During the previous year, the Company had reduced the salaries of their employees to manage the cashflows effectively in the view of COVID-19 outbreak. To compensate such deductions and in the view of performance of the current period, the Company had made a provision of one time incentive for the employees amounting to INR 230.66 lakhs during the quarter ended June 30, 2021.
- 11 The Ministry of Corporate Affairs (MCA) through a notification dated March 24, 2021, amended Schedule III of the Companies Act, 2013, applicable for financial periods commencing from April 1, 2021. Pursuant to such amendments, security deposits INR 226.90 lakhs as at March 31, 2021 have been reclassified from 'Loans' to 'Other financial assets' and current maturities of long term debts INR 8.89 lakhs as at March 31, 2021 have been reclassified from 'Other financial liabilities' to 'Current borrowings'.
- 12 Previous year/period figures have been regrouped/rearranged wherever considered necessary.
Place: Mumhai Date: October 22, 2021
For and on Behalf of the Board of Directors Onward Technologies Limited $\begin{array}{l} \text{Dspully signed} \ \text{by AGAR HABAB} \ \text{MCHTA} \ \text{DMe-2021.10.22} \ 13.22.56 + 05.30 \end{array}$ JIGAR HARISH Jigar MehtaMEHTA Managing Director
| Onward Technologies Limited |
|---|
| Corporate Identity Number: L28920MH1991PLC062542 |
| Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli, |
Mumbai - 400 018, India.
Tel: +91 22 2492 6570 E-mail: [email protected] Website: www.onwardgroup.com
$\bar{\imath}$
| STANDALONE BALANCE SHEET AS AT SEPTEMBER 30, 2021 | ||||
|---|---|---|---|---|
| Particulars | (INR In lakhs) As at |
|||
| As at September 30, 2021 |
March 31, 2021 | |||
| (Unaudited) | (Audited) | |||
| ASSETS | ||||
| Non-current assets | ||||
| Property, plant and equipment | 1.661.46 | 1,637.71 | ||
| Intangible assets | 328.02 | 387.87 | ||
| Intangible assets under development | 7.50 | |||
| Right of use assets | 723.29 | 829.25 | ||
| Financial assets | ||||
| (a) Investments | 1,361.33 | 1,214.21 | ||
| (b) Other financial assets (Refer note 11) | 286.55 | 278.16 | ||
| Deferred tax assets | 320.64 | 238.15 1,106.80 |
||
| Income-tax assets (net) | 1,463.88 4.44 |
2.58 | ||
| Other non-current assets | 6,149.61 | 5,702.23 | ||
| Current assets | ||||
| Financial assets | ||||
| (a) Investments | 1,433.20 | 10.00 | ||
| (b) Trade receivables | 3,218.55 | 2,833.79 | ||
| (c) Cash and cash equivalents | 1,585.23 | 1,188.44 | ||
| (d) Bank balances other than (c) above | 90.81 | 98.28 | ||
| (e) Contract assets | 1,670.88 | 1,265.74 | ||
| (f) Other financial assets | 65,71 | 19.41 | ||
| Other current assets (Refer note 7) | 586.49 | 601.94 | ||
| 8,650.87 | 6,017.60 | |||
| TOTAL ASSETS | 14,800.48 | 11,719.83 | ||
| EQUITY AND LIABILITIES | ||||
| Equity Equity share capital (Refer note 4 and 9) |
1,758.74 | 1,633.88 | ||
| Other equity (Refer note 4 and 9) | 8,102.30 | 5,730.78 | ||
| 9,861.04 | 7,364.66 | |||
| Non-current liabilities | ||||
| Financial liabilities | ||||
| (a) Borrowings | 55.69 | 60.40 | ||
| (b) Lease Liabilites | 470.74 | 546.20 | ||
| Provisions | 537.44 1,063.87 |
461-15 1,067.75 |
||
| Current liabilities | ||||
| Financial liabilities | ||||
| (a) Borrowings (Refer note 11) | 9.25 | 8.89 | ||
| (b) Trade payables | ||||
| -Total outstanding dues of micro enterprises and small enterprises | 61.52 | 27.96 | ||
| -Total outstanding dues of creditors other than micro enterprises and small enterprises | 814.76 | 750.63 | ||
| (c) Lease Liabilites | 351.37 | 378.50 | ||
| (d) Other financial liabilities (Refer note 11) | 1,312.31 94.69 |
1,243.46 112-27 |
||
| Provisions Contract Liabilities |
820.72 | 283.17 | ||
| Other current liabilities | 410.95 | 482.54 | ||
| 3,875.57 | 3,287.42 | |||
| TOTAL EQUITY AND LIABILITIES | 14,800.48 | 11,719.83 |
For and on Behalf of the Board of Directors Onward Technologies Limited SINGAR SCHOOL SECTION NEWS CONTRACT NEWSLETTEN
| Onward Technologies Limited | ||
|---|---|---|
| Corporate Identity Number: L28920MH1991PLC062542 | B CHENHEAR | |
| Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli, | ||
| Mumbai - 400 018, India. | ||
| Tel: +91 22 2492 6570 | ||
| E-mail: [email protected] Website: www.onwardgroup.com | ||
| STANDALONE STATEMENT OF CASH FLOW AS AT SEPTEMBER 30, 2021 | ||
| Particulars | Year to date September 30, 2021 |
Year to date September 30, 2020 |
| A) Cash flows from operating activities | (Unaudited) | (Unaudited) |
| Profit before income tax | 337.71 | 765.53 |
| Adjustments for | ||
| Depreciation and amortisation expense | 435.89 | 495.87 |
| (Profit) / loss on disposal of property, plant and equipment | (2.94) | |
| Dividend and interest income classified as investing cash flow | (3.27) (7.35) |
(243.21) (22.84) |
| Unwinding of discount on security deposit Employee share based payment expenses |
41.11 | 46.00 |
| Finance costs | 43.85 | 159.36 |
| Net gain on termination of lease arrangements | × | (7.66) |
| Profit on sale of mutual funds | (9.52) | |
| Fair value gain on financial instruments at fair value through profit and loss Provision for Onerous contract |
(7.86) 13.50 |
|
| Unrealised foreign exchange (gain)/loss | (39.94) | |
| Allowance for doubtful debts | 36.63 | 19.07 |
| Bad Debts written off | 29.06 | 0.43 |
| Operating profit before working capital changes | 866.87 | 1,212.55 |
| Changes in operating assets and liabilities | ||
| (Increase)/Decrease in trade receivables | (463.71) | 952.65 |
| (Increase)/Decrease in other financial assets (Increase)/Decrease in other assets |
42.14 13.59 |
114.27 74.21 |
| (Increase)/Decrease in loans | 7.35 | |
| (Increase)/Decrease in Contract assets | (405.14) | (910.64) |
| (Decrease)/Increase in trade payables | 97.67 | 118.06 |
| (Decrease)/Increase in other liabilities (including contract liabilities) (Decrease)/Increase in other financial liabilities |
465.96 131.38 |
(689.07) (209.95) |
| (Decrease)/Increase in employee benefit obligations | 36.33 | 44.20 |
| Cash generated from operations | 792.44 | 706.28 |
| Net Refund received/(Income taxes paid) | (473.89) | 316.17 |
| Net cash inflow/ (outflow) from operating activities | 318.55 | 1,022.45 |
| B) Cash flows from investing activities Payments for property, plant and equipment |
(171.04) | (148.67) |
| Payments for intangible assets | (78.53) | (16.41) |
| Proceeds from sale of property, plant and equipment | 12.69 | 17.50 |
| Net proceeds from the investments in fixed deposits | 1.34 3.27 |
(43.30) 20.31 |
| Interest received Dividend received |
222.90 | |
| Investment in subsidiaries | (147.12) | ¥. |
| Net investment in mutual funds | (1,397.65) | |
| Net cash outflows from investing activities | (1,777.04) | 52.33 |
| Cash flows from financing activities IC) |
||
| Principal elements of lease payments | (211.62) | (228.69) |
| Interest paid (including interest on lease liabilities) Proceeds from issue of shares against ESOP |
(43.85) 14.86 |
(101.27) 17.14 |
| Proceeds from share application money pending allotment against ESOP | 6.12 | 0.31 |
| Proceeds from issue of equity shares/warrants pursuant to preferential allotment | 2,827.50 | |
| Preferential share issue expenses | (208.60) | |
| Repayment of borrowings Payment of Dividend |
(4.35) (524.78) |
(81.63) (243.21) |
| Net cash inflows/ (outflow) from financing activities | 1,855.28 | (637.35) |
| 396.79 | 437.43 | |
| Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year |
1,188-44 | 750.20 |
| Cash and cash equivalents at the end of the period | 1,585.23 | 1,187.63 |
| Reconciliation of cash and cash equivalents as per the cash flow statement: | ||
| September 31, 2021 | September 31, 2020 | |
| Cash and cash equivalents | 1,585.23 | 1,187.63 |
| Balances as per statement of cash flows The above cash flow statement of cash flow is prepared under Indirect Method of Ind AS 7 - Statement of cash flows. |
1,585.23 | 1,187.63 |
| For and on Behalf of the Board of Directors | ||
| Onward Technologies Limited | ||
| Chartered Account | JIGAR Digitally signed by JCANHARSHMONTA Date: 2021-10:22 |
|
| HARISH 110715540030 MEHTA |
||
| Place : Mumbai Date: October 22, 2021 |
Jigar Mehta Managing Director |
|
REGISTER
RIVO12754N/NEGGOLS
Price Waterhouse Chartered Accountants LLP
To. The Board of Directors Onward Technologies Limited 2nd Floor, Sterling Centre, Dr. Annie Besant Road, Opposite Atria Mall, Worli, Mumbai - 400018
- We have reviewed the unaudited consolidated financial results of Onward Technologies Limited (the "Parent") and its subsidiaries (the parent and its subsidiaries hereinafter referred to as the "Group"). (refer Note 2 of the Statement) for the quarter ended September 30, 2021 and the year to date results for the period April 01, 2021 to September 30, 2021 which are included in the accompanying "Statement" of Consolidated Unaudited Financial Results for Quarter ended September 30, 2021", the unaudited consolidated statement of assets and liabilities as on that date and the consolidated statement of cash flows for the half-year ended on that date (the "Statement"). The Statement is being submitted by the Parent pursuant to the requirement of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations"), which has been initialled by us for identification purposes.
-
- This Statement, which is the responsibility of the Parent's Management and has been approved by the Parent's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed under Section 133 of the Companies Act, 2013, and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
- We conducted our review of the Statement in accordance with the Standard on Review Engagements $\mathbf{R}$ (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity", issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.
| Sr. No. |
Name of Entity | Relationship | |
|---|---|---|---|
| Onward Technologies Limited | Parent | ||
| 2 | Onward Technologies Inc. | Subsidiary | |
| Onward Technologies GmbH | Subsidiary | ||
| Onward Technologies B.V. | Subsidiary | ||
| Onward Technologies Canada Inc. | Subsidiary |
The Statement includes the results of the following entities:
- Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement has not been prepared in all material respects in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standard and other accounting principles generally accepted in India and has not disclosed the information required to be disclosed in terms of Regulation 33 of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
Price Waterhouse Chartered Accountants LLP, 7th Floor, Tower A - Wing 1, Business Bay, Airport Road Yerwada, Pune - 411 006 T: $+91(20)$ 41004444, F: $+91(20)$ 41006161
Registered office and Head office: Sucheta Bhawan, 11A Vishnu Digambar Marg, New Delhi 110 002
Price Waterhouse Chartered Accountants LLP
Onward Technologies Limited Report for Consolidated Financial Results for the quarter ended September 30, 2021 Page $2$ of $2$
- The consolidated unaudited financial results include the interim financial results of three subsidiaries which have not been reviewed by their auditors, whose interim financial results reflect total assets of Rs. 378.32 and net assets of Rs. (24.38) as at September 30, 2021 and total revenue of Rs. 283.49 and Rs. 488.23, total loss after tax of Rs. 17.56 and Rs. 72.79 and total comprehensive loss of Rs. 15.29 and Rs. 73.08 for the quarter ended September 30, 2021 and for the period from April 01, 2021 to September 30, 2021, respectively, and cash flows (net) of Rs. 100.71 for the period from April 01, 2021 to September 30, 2021, as considered in the consolidated unaudited financial results. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.
Our conclusion on the Statement is not modified in respect of the above matter.
For Price Waterhouse Chartered Accountants LLP Firm Registration Number: 012754N/N500016
Neeraj Sharma Partner Membership Number: 108391 UDIN: 21108391AAAAHE2368 Pune October 22, 2021
| Frywyser-ci |
|---|
| $6 + 9 + 9 + 7 + 17$ |
(INR In lakhs)
Onward Technologies Limited
Corporate Identity Number: L28920MH1991PLC062542
Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli, Mumbai - 400 018, India.
Tel: +91 22 2492 6570
E-mail: [email protected] Website: www.onwardgroup.com
STATEMENT OF CONSOLIDATED UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED SEPTEMBER 30, 2021
| quarter ended | vear to date | rear ended | |||||
|---|---|---|---|---|---|---|---|
| Sr. No. |
Particulars | September 30, 2021 |
June 30, 2021 | September 30, 2020 |
September 30, 2021 |
September 30, 2020 |
March 31, 2021 |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | ||
| 1 Revenue from operations | 7,294.10 | 6,959.76 | 6,018.28 | 14,253.86 | 11,621.26 | 24,036.66 | |
| $\overline{z}$ | Other income (Refer note 7 and 8) | 410.51 | 1,554.08 | 82.38 | 1,964.59 | 114.73 | 533.52 |
| 3 | Total Income (1+2) | 7,704.61 | 8,513.84 | 6,100.66 | 16,218.45 | 11,735.99 | 24,570.18 |
| 4 Expenses | |||||||
| a) Purchase of software licences | 1.07 | ÷ | 1.07 | 0.12 | 174.29 | ||
| b) Employee benefits expense (Refer note 8 and 12) | 5,438.63 | 5,881-52 | 4,628.48 | 11,320.15 | 9,197.08 | 18,897.20 | |
| c) Finance costs | 23.83 | 22.54 | 56.50 | 4637 | 126.89 | 232.38 | |
| d) Depreciation and amortisation expense | 251.60 | 242-36 | 268.43 | 493.96 | 555.38 | 1,044.47 | |
| e) Other expenses (Refer note 10) | 1,128.33 | 1,265-79 | 823.16 | 2,394.12 | 1.481.10 | 3,240.57 | |
| Total Expenses | 6,843.46 | 7,412.21 | 5,776.57 | 14,255.67 | 11,360.57 | 23,588.91 | |
| 5 Profit before tax (3-4) | 861.15 | 1,101.63 | 324.09 | 1,962.78 | 375.42 | 981.27 | |
| 6 | Tax expense | ||||||
| a) Current tax | 90.03 | 26.78 | 126.84 | 116.81 | 185 30 | 373.56 | |
| b) Deferred tax | 212.21 | 85-69 | (45.52) | 297-90 | (91.67) | (126.08) | |
| Total tax expense/ (credits) | 302.24 | 112.47 | 81.32 | 414.71 | 93.63 | 247.48 | |
| 7 | Net profit /(Loss) for the period (5 - 6) | 558.91 | 989.16 | 242.77 | 1,548.07 | 281.79 | 733.79 |
| B | Other comprehensive income, net of income tax a) i) items that will not be reclassified to profit or loss |
||||||
| ii) income tax relating to items that will not be | (12.48) 3.14 |
3.60 | 14.74 | (8.88) | 15.17 | 14.41 | |
| reclassified to profit or loss | (0.91) | (3.71) | 2.23 | (3.82) | (3.63) | ||
| b) i) items that will be reclassified to profit or loss | (0.59) | 14.31 | (36.34) | 13.72 | (42.89) | (39.67) | |
| ii) income tax relating to items that will be reclassified | $\sim$ | ٠ | |||||
| to profit or loss | |||||||
| Total other comprehensive income, net of income tax | (9.93) | 17.00 | (25.31) | 7.07 | (31.54) | (28.89) | |
| 9 | Total comprehensive income for the period (7+8) | 548.98 | 1,006.16 | 217.46 | 1,555.14 | 250.25 | 704.90 |
| 10 Net Profit/ (loss) attributable to: | |||||||
| a) Owners | 558-91 | 989.16 | 242.77 | 1,548.07 | 281.79 | 733.79 | |
| b) Non-controlling interests | ç. | ٠ | ٠ | ||||
| 11 Total comprehensive income attributable to: | |||||||
| a) Owners | 548-98 | 1,006 16 | 217.46 | 1,555.14 | 250.25 | 704.90 | |
| b) Non-controlling interests | Ξ | ä. | g. | ÷ | ÷ | ||
| 12 Paid-up equity share capital : (Face value INR 10 each) (Refer note 11) | 1,758.74 | 1,749.30 | 1,621.40 | 1,758.74 | 1,621.40 | 1,633.88 | |
| 13 Other equity | ε | ۷ | ٠. | ż | ÷ | 5,814-25 | |
| 14 | Earnings per share (of INR 10 each) | ||||||
| Basic: (in INR) | 3.18 | 6.03 | 1.50 | 9.11 | 1.74 | $4 - 52$ | |
| Diluted: (in INR) | 2.84 | 579 | 1.45 | 9AQ | 1.69 | $A = E$ |
Notes
1 The statement has been reviewed by Members of the Audit Committee and approved by the Board of Directors at their meeting held on October 22, 2021.
- 2 The consolidated financial results include the results of Onward Technologies Limited (the Holding company) and its subsidiaries in USA, Germany, Netherland and Canada (together referred a "the Group").
- 3 This statement has been prepared in accordance with the Companies (Indian Accounting Standard) Rules, 2015 (Ind AS) prescribed under section 133 of the Companies Act, 2013 and rules amended from time to time
- 4 The Group has only one operating segment which is Engineering Design and IT services. Accordingly, separate segment information is not required to be disclosed.
- 5 During the quarter and six months ended September 30, 2021, the Group has issued 130,100 equity shares following the exercise of stock options by certain employees under the ESOP scheme 2009 and has issued 18,500 equity shares following the exercise of stock options by certain employees under the ESOP scheme, 2019.
- 6 The Group has taken into consideration the impact of the known internal and external events arising from COVID-19 pandemic while preparing the financial information. As a part of suc assessment, the Group has considered the recoverability of outstanding trade receivables, contract assets, impact of lease modifications, accounting for benefits received from governments and future cash flow position upto the date of approval of these financial results. The Group is confident of recoverability of assets as on September 30, 2021. However, the impact assessment c COVID-19 is an ongoing process and it's impact remains uncertain, given the uncertainties associated with its nature and duration. The impact of global health pandemic might be different from that estimated as at the date of approval of these financial results and the Group will continue to closely monitor any significant impact on the Group's financial position
- 7 The Group had obtained a loan under Paycheck Protection Program ("PPP") in the USA. Total amount of INR 1,499.31 lakhs of such loan including interest accrued thereon was disclosed a borrowing. In the quarter ended June 30, 2021, the Group's application for forgiveness of such loan and the interest thereon is approved by the Small Business Authorities (SBA) on June 24, 2021. Accordingly, entire amount of such loan outstanding has been disclosed as "Other Income" in the statement of Profit and Loss.
- B The Group had assessed it's eligibility under the Employee Retention Credit relief available under The Coronavirus Aid, Relief and Economic Security Act (CARES Act) introduced by the USA Government and accordingly concluded that such benefit should be recorded once benefit is received from the Government. During the quarter and six months ended as on September 30, 2021 amount of INR 289.30 lakhs and INR 522.56 lakhs has been recognised as other income and adjusted against employee benefit expenses, respectively. Management is in the process of ascertaining the amount of benefit for the quarter ended as on September 30, 2021. Such amount will be recognised in the Statement of Profit and loss upon receipt of benefit.
- 9 The Code on Social Security, 2020 ('Code'), pertaining to employee benefits during employment and post-employment, received Presidential assent in September 2020. The ministry of Labour and employment has released draft rules for the code on Social security, 2020 on November 13, 2020. The new code may impact the existing employee benefit obligations of the Group. The Company will assess the impact and recognise it in its financial statements in the period in which the Code becomes effective and the related rules are notified.
- 10 The Group had recognised the export incentives amounting to INR 203.82 lakhs under the Service Exports from India Scheme, 2015 (SEIS Scheme) for services exported till March 31, 2020. In the view of uncertainty on account of delay in announcement by government about the specific details to claim such benefits, the Group had recognised provision in the quarter ended June 30, 2021 As per recent notification, management will initiate a process to claim such benefits and reverse the provision to the extent of eligible claim, on completion of filing.
- 11 The Holding company had entered into an agreement on May 27, 2021 to make preferential allotment to Infinity Direct Holdings (the "investor"). As per the agreement, the Holding company during the quarter ended June 30, 2021, had issued 1,100,000 equity shares each fully paid-up at a price of INR 130 (inclusive of face value of INR 10 each) per share for cash and 4,300,000 share warrants, each warrant convertible into one equity share of the Holding company, at a price per warrant of INR 130 (inclusive of face value of INR 10 each), convertible within 18 months from th date of allotment of such warrants. The Holding company received an approval from the shareholders in extra ordinary general meeting for such preferential allotment. Accordingly the Holdin company had issued the equity shares to investor and 25% amount received against warrant issue is accounted as application money received pending for allotment. All the incidental expenses ne of tax related to this preferential allotment amounting to INR 156.10 lakhs had been adjusted against other equity-
- 12 During the previous year, the Holding Company had reduced the salaries of their employees to manage the cashflows effectively in the view of COVID-19 outbreak. To compensate such deduction and in the view of performance of the current period, the Group has made a provision of one time incentive for the employees amounting to INR 285.55 lakhs during the quarter ended June 30 2021
- 13 The Ministry of Corporate Affairs (MCA) through a notification dated March 24, 2021, amended Schedule III of the Companies Act, 2013, applicable for financial periods commencing from April 1 2021. Pursuant to such amendments, security deposits INR 252.64 lakhs as at March 31, 2021 have been reclassified from 'Loans' to 'Other financial assets' and current maturities of long terr debts INR 8.89 lakhs as at March 31, 2021 have been reclassified from 'Other financial liabilities' to 'Current borrowings' 14 Previous year/period figures have been regrouped/rearranged wherever considered necessary.
Place: Mumbai Date: October 22, 2021 For and on Behalf of the Board of Directors Onward Technologies Limited $\left.\begin{array}{l|l} \text{JIGAR} & \text{Diquark speed} \ \text{by normal} & \text{total number} \ \text{MARISH} & \text{total} \end{array}\right.$ See 2021.1022 Managing Director
Onward Technologies Limited
Corporate Identity Number: L28920MH1991PLC062542 Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli,
Mumbai - 400 018, India.
Tel: +91 22 2492 6570
E-mail: [email protected] Website: www.onwardgroup.com
| (INR In lakhs) | ||
|---|---|---|
| As at | As at | |
| Particulars | September 30, 2021 | March 31, 2021 |
| (Unaudited) | (Audited) | |
| ASSETS | ||
| Non-current assets | ||
| Property, plant and equipment | 1,740.19 | 1,713.90 |
| Intangible assets | 328.02 | 387.87 |
| Intangible assets under development | 7.50 | |
| Right of use asset | 857.65 | 879.45 |
| Financial assets | ||
| (a) Other financial assets (Refer note 13) | 310.18 | 303.90 |
| Deferred tax assets | 355.83 | 330.52 |
| Income tax assets | 1,474.35 | 1,113.03 |
| Other non-current assets | 4.44 | 2.58 |
| 5,070.66 | 4,738.75 | |
| Current assets Financial Assets |
||
| (a) Investments | 1,433.20 | 10.00 |
| (b) Trade receivables | 4,537.28 | 4,082.84 |
| (c) Cash and cash equivalents | 3,615.82 | 2,849.05 |
| (d) Bank balances other than (c) above | 90.81 | 98.28 |
| (e) Contract assets | 1,527.99 | 1,340.10 |
| (f) Other financial assets | 45.05 | 9.68 |
| Other current assets (Refer note 10) | 608.09 | 639.45 |
| 11,858.24 | 9,029.40 | |
| TOTAL ASSETS | 16,928.90 | 13,768.15 |
| EQUITY AND LIABILITIES | ||
| Equity | ||
| Equity share capital (Refer note 5 and 11) | 1,758.74 | 1,633.88 |
| Other equity (Refer note 5 and 11) | 9,498.89 | 5,814.25 |
| 11,257.63 | 7,448.13 | |
| Non-current liabilities | ||
| Financial Liabilities | ||
| (a) Borrowings | 55.69 | 60.40 |
| (b) Lease liabilities | 555.46 | 546.20 |
| Provisions | 485.70 267.21 |
479.46 i al- |
| Deferred tax liabilities | 1,364.06 | 1,086.06 |
| Current liabilities | ||
| Financial Liabilities | ||
| (a) Borrowings (Refer note 13) | 9.25 | 1,473.61 |
| (b) Trade payables | ||
| -Total outstanding dues of micro enterprises and small enterprises | 61.52 | 27.96 |
| -Total outstanding dues of creditors other than micro enterprises and small enterprises | 832.01 | 689.02 |
| (c) Lease liabilities | 408.78 | 429.73 |
| (d) Other financial liabilities (Refer note 13) | 1,721.17 | 1,503.76 |
| Provisions | 196.33 | 137.38 |
| Contract Liabilities | 343.02 | 294.81 |
| Other current liabilities | 735.13 | 677.68 |
| 4,307.21 | 5,233.95 | |
| TOTAL EQUITY AND LIABILITIES | 16,928.90 | 13,768.15 |
TOTAL EQUITY AND LIABILITIES Nouse Chartered Account
2754N/ Pune
Place : Mumbai Date: October 22, 2021 For and on Behalf of the Board of Directors Onward Technologies Limited
JIGAR HARISH SHERIMANING MELTA Jigar Mehta
Managing Director
| Onward Technologies Limited | (I) orms | |
|---|---|---|
| Corporate Identity Number: L28920MH1991PLC062542 | ||
| Registered Office: Sterling Centre, 2nd Floor, Dr. A. B. Road, Worli, | ||
| Mumbai - 400 018, India. | ||
| Tel: +91 22 2492 6570 | ||
| E-mail: [email protected] Website: www.onwardgroup.com | ||
| CONSOLIDATED STATEMENT OF CASH FLOW AS AT SEPTEMBER 30, 2021 | ||
| Particulars | Year to date | Year to date |
| September 30, 2021 | September 30, 2020 | |
| (Unaudited) | (Unaudited) | |
| A) Cash flows from operating activities | ||
| Profit before income tax Adiustments for |
1,962.78 | 375.42 |
| Depreciation and amortisation expense | 493.96 | 555.38 |
| (Profit) / loss on disposal of property, plant and equipment | (2.94) | |
| Interest income | (3.27) | (20.03) |
| Unwinding of discount on security deposit | (7.35) | (22.84) |
| Employee share based payment expenses Finance costs |
86.76 46.37 |
69.05 126.89 |
| Income from waiver of loan under Paycheck Protection Program Scheme | (1,467.71) | |
| Net gain on termination of lease arrangements | (7.66) | |
| Profit on sale of mutual funds | (9.52) | |
| Fair value gain on financial instruments at fair value through profit and loss Unrealised foreign exchange (gain)/loss |
(7.86) (39.94) |
|
| Provision for Onerous contract | 13.50 | |
| Allowance for doubtful debts | 36.63 | 19.07 |
| Bad debts written off | 29.33 | 0.43 |
| Operating profit before working capital changes | 1,130.74 | 1,095.71 |
| Changes in operating assets and liabilities | ||
| (Increase)/Decrease in trade receivables | (533.66) | 1,058.55 |
| (Increase)/Decrease in other financial assets (Increase)/Decrease in other assets |
39.99 29.50 |
94.01 97.00 |
| (Increase)/Decrease in Contract assets | (187.89) | (644.44) |
| (Increase)/Decrease in trade payables | 176.53 | (85.29) |
| (Increase)/Decrease in other liabilities | 105.65 | 6.19 |
| (Decrease)/Increase in other financial liabilities (Increase)/Decrease in employee benefit obligations |
293.46 42.81 |
(186.80) 81-04 |
| Cash generated from operations | 1,097.13 | 1,515.97 |
| Net Refund received/(Income taxes paid) | (479.40) | 251.46 |
| Net cash inflow/ (outflow) from operating activities | 617.73 | 1,767.43 |
| B) Cash flows from investing activities | ||
| Payments for property, plant and equipment Payments for intangible assets |
(187.13) (78.53) |
(141.69) $(16-36)$ |
| Proceeds from sale of property, plant and equipment | 12.69 | 17.50 |
| Net proceeds from the investments in fixed deposits | (21.77) | (36.25) |
| Net investment in mutual funds Interest received |
(1,397.65) 3.27 |
20.03 |
| Net cash outflows from investing activities | (1,669.12) | (156.77) |
| IC) Cash flows from financing activities |
||
| Interest paid | (60.25) | (126.89) |
| Principal elements of lease payments | (249.41) | (264.67) |
| Proceeds from issue of shares against ESOP | 14.86 | 17-14 |
| Proceeds from share application money pending allotment against ESOP Proceeds from issue of equity shares/warrants pursuant to preferential allotment |
6.12 2,827.50 |
0.31 |
| Preferential share issue expenses | (208.60) | |
| Net movement in borrowings | (1.00) | 254.58 |
| Payment of Dividend Net cash inflows/ (outflow) from financing activities |
(524.78) 1,804.44 |
(243.21) (362.74) |
| Net increase / (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year |
753.05 2,849.05 |
1,247.92 1,778.65 |
| Effect of foreign exchange on cash and cash equivalents | 13.72 | (13.66) |
| Cash and cash equivalents at the end of the period | 3,615.82 | 3,012.91 |
| Reconciliation of cash and cash equivalents as per the cash flow statement: | ||
| September 31, 2021 | September 31, 2020 | |
| Cash and cash equivalents Balances as per statement of cash flows |
3,615.82 | 3,012.91 |
| The above cash flow statement of cash flow is prepared under Indirect Method of Ind AS 7 - Statement of cash flows Mouse Chartered |
3,615.82 | 3,012.91 |
| For and on Behalf of the Board of Directors | ||
| Onward Technologies Limited | ||
| JIGAR HARISH Digitally signed by MEHTA URE 2001 HARE THE REAL PROPERTY |
||
| ants Place: Mumbai |
Jigar Mehta | |
| è. Date: October 22, 2021 |
Managing Director |